In a report released yesterday, Vince Valentini from TD Cowen maintained a Buy rating on Telus, with a price target of C$26.00.
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Vince Valentini has given his Buy rating due to a combination of factors that highlight Telus’s potential for recovery and growth. The recent decline in Telus’s stock price has made its valuation more attractive compared to its peers, prompting an upgrade in its ranking. Concerns about weak EBITDA growth and potential dividend cuts are considered exaggerated, with visible catalysts expected to bolster investor confidence in the company’s debt reduction targets.
Furthermore, Valentini notes that Telus’s management is committed to asset sales, which should lower interest costs and ensure that free cash flow fully covers cash dividends by 2027. The company’s revenue mix and infrastructure investments, such as the transition from copper to fiber, are seen as advantageous compared to competitors. Additionally, the prospects for Telus Health are optimistic, with a solid execution plan in place, further supporting the positive outlook for Telus’s stock price recovery.
In another report released on November 18, National Bank also upgraded the stock to a Buy with a C$21.00 price target.
TU’s price has also changed moderately for the past six months – from C$22.070 to C$18.220, which is a -17.44% drop .